Actually, running through Odesk or Elance as he suggested can be pretty safe if done right, but the fees kind of suck. You could have also transferred your funds into Paypal. I didn't get from the conversation that he would have been a guy to screw you over with non-payment, but you could have been screwed over by changing scopes and unrealistic expectations. If you are okay with doing hourly, then that's probably the best way of dealing with these sorts of clients, and Odesk pays weekly for hourly work.